MoneyHero Ltd. Q4 FY2024 earnings call

• Progress towards profitability: Adjusted EBITDA loss improved sequentially from prior quarters, showing an improving trajectory.
• Revenue mix diversification: Focus on high margin products like insurance and wealth, with insurance and wealth revenues growing significantly.
• Cost control: Lowered operating expenses, optimized unit economics, and reduced paid marketing and rewards spend.
• Product and tech strategy: Adopted buy-over-build philosophy, leveraging AI and automation for customer service, content production, and workflow optimization.
• Market position: Operate in a large addressable market, have a debt-free balance sheet with $42.5 million cash, and a more efficient business model.

During the fourth quarter, MoneyHero achieved a robust financial and operational performance. Adjusted EBITDA loss improved to $2.9 million, the best quarterly performance since going public. Gross margin expanded by 25 percentage points year-over-year, and net loss narrowed sharply to $18.8 million from $94.3 million in the same period last year. Registered members reached 7.5 million, up 42% year-on-year, and approved applications grew 21% year-over-year to 767,000. In terms of product segments, insurance revenue in 2024 grew 40% to $8.2 million, accounting for a double-digit share of total revenue. Wealth revenue surged 138% to $8.5 million in 2024.

• Target to achieve $100 million in revenue in 2025 and generate positive adjusted EBITDA in the second half of 2025.
• Expect adjusted EBITDA to consistently improve in 2025, with positive adjusted EBITDA quarterly in the second half.
• Continue to focus on scaling higher margin verticals (e.g., insurance), tighten cost controls, and advance AI initiatives.

Q: What’s the company’s strategy to lower your acquisition costs and how do you plan to leverage the growing registered membership base?

A: Rohith Murthy mentioned leveraging a centralized data platform for personalized marketing campaigns, investing in loyalty-based strategies with the growing 7.5 million registered members, launching Credit Club in Hong Kong for personalized recommendations, and targeting higher margin and recurring revenue verticals to boost customer lifetime value.

Q: Related to insurance, how much is the insurance revenue expected to contribute for FY 2025 and what will be the key drivers?

A: Rohith Murthy stated insurance is expected to be a meaningful driver in 2025, with key drivers including real-time car insurance platform launch, fast and friction-free travel insurance, embedded insurance opportunities, and leveraging the registered member base for targeted offerings.

Q: Given the current cash position that you have, what’s your capital allocation strategy?

A: Danny Leung said the company will ensure robust liquidity, place excess cash in conservative interest-bearing instruments, and actively seek growth opportunities like bolt-on acquisitions, strategic talent addition, and technology partnerships aligned with high-margin verticals.

Q: What markets do you expect to drive that growth in 2025?

A: Rohith Murthy discussed Singapore and Hong Kong, which are mature digital-first markets with advanced infrastructure and consumer sophistication, and Philippines and Taiwan, with Philippines focusing on tele sales and conversion expertise, and Taiwan on UX/UI optimization and generative AI for growth.

Q: Can you talk a little more about the impact that’s had the reorganization on the cost structure and margins and what you’re able to do?

A: Danny Leung said restructuring led to a 45% year-over-year decrease in employee-related expenses, optimized cost structure, improved operating leverage, and resulted in a significant improvement in adjusted EBITDA loss.

Q: The advertising and marketing expenses were up quite a bit from last year in terms of absolute dollars and percent of revenue. Can you kind of give your thoughts on how you expect that going forward, especially with the $100 million revenue target?

A: Danny Leung stated marketing expenses increased due to strategic growth investments, but there was a 23% year-over-year reduction in Q4 2024, with discipline in spending, optimization of campaigns, and focus on high margin verticals to improve ROI.

Q: Can you give a little more color on what the plans are for AI and automation and what kind of top- and bottom-line contribution you expect to have from that?

A: Rohith Murthy mentioned AI-powered customer service tools to reduce inquiry volumes, generative AI for content production, workflow automation using agentic AI to boost productivity, and improved segmentation/personalization via data platform AI to drive monetization.

Q: Can you just talk about your plans to leverage the NASDAQ listing and how you plan to get the stock back up over the dollar threshold?

A: Danny Leung said the NASDAQ listing enhanced credibility, governance, and flexibility for M&A and talent retention, believes the stock is undervalued, and focuses on executing the efficiency strategy to drive revenue growth and profitability, expecting market recognition of the business strength.